Teachers Association of Long Beach union members rally against proposed health benefits cut

LONG BEACH - Cabrillo High School art teacher Karena Massengil hasn't had a raise in four years, and this year her classroom size ballooned to 40 students. So when she heard of the school district's plan to cut health care benefits, Massengil said she was furious.

"We're working just as hard as ever and still we're seeing more cuts," she said. "Students and teachers are no longer a priority for the district."

Holding signs that read "Health Care Cuts Bleed Great Teachers" and "Health Cuts Never Heal," hundreds of teachers rallied Tuesday outside of the Long Beach Unified School District's Board of Education meeting in protest of a proposal to cut health care benefits for teachers, nurses and librarians. The board wasn't scheduled to discuss the proposal at the meeting.

The rising cost of employee health care has become a source of contention in districts across California as schools face millions of dollars in state funding cuts.

The LBUSD and its teachers union, the Teachers Association of Long Beach, have been in contract negotiations for nearly two years but have hit a stalemate on health benefits.

LBUSD spokesman Chris Eftychiou said the state's third-largest school district has cut more than $300 million from its operating budget since 2008 and could face an additional $35 million loss in annual funding if the Proposition 30 tax hike fails Nov. 6. In an effort to save funds, the district has bumped up classroom sizes and laid off more than 1,000 employees in recent years.

Eftychiou said the district needs to find a long-term solution to balance its growing health care costs.

"We're seeing the costs for health care benefits continue to escalate at a rapid rate while our revenues are declining," he said. "This isn't just in Long Beach, this is a statewide and national problem."

LBUSD teachers pay no monthly premiums on their health insurance. Eftychiou said the district pays up to $21,862 a year in health benefits for a teacher under the most expensive family plan.

The school district has proposed a maximum employer contribution cap for medical, dental and vision insurance premiums, setting the district's contribution at no more than 95 percent of the 2012 premium costs of the most expensive plans. The change would go into effect Jan. 1.

TALB representatives said the plan doesn't save the district any additional money in the long run as health costs are expected to keep rising.

The new plan could cost some members hundreds of dollars each month and would put a tremendous burden on families, said TALB President Virginia Torres, adding that morale for teachers is at an all-time low.

"We've increased class sizes, seen hundreds of teachers laid off, we've tried pay cuts and five-day furloughs," she said. "We've compromised over the years and we're still willing to do more, but the district is refusing to compromise."

As the school board held its meeting, hundreds of teachers rallied outside, chanting phrases such as, "Health care cuts never heal, so LBUSD let's make a deal," and "TALB is here and we will stay, bargain fairly and make our day."

Gina Bonetati, a fifth-grade teacher at Prisk Elementary, said heath care is a vital issue for teachers.

"It's upsetting to hear that they want to place a cap on our health care benefits, because health care is so important," she said. "Kids come to school sick and we have to stay healthy, and to stay healthy we need a good system."

Speaking before the board, Torres said the district is sitting on millions in reserves while claiming to be on the brink of financial insolvency. TALB members, she said, have offered to make changes in their health care that would result in $2 million in annual savings, but the district has shown no interest in the deal.

Eftychiou said the LBUSD has reserves that were built in part from one-time federal stimulus funds, but the district is concerned for its future fiscal stability. According to district officials, LBUSD's unrestricted fund balance, after paying all expenses, is $94.2 million. The district's total general fund expenditures for the current year is $680 million.

"We're projected to have a negative cash balance within two to three years at the rate we're spending," he said, adding that the district spends $50 million in pay roll and health benefits each month. "We're not magically immune from the budget pressures threatening school districts up and down this state."

The two sides reached impasse earlier this year and are now in the fact-finding stage of bargaining. Results from the fact-finding report are expected to be released any day, after which the district has 10 days to reach an agreement with TALB or release the fact-finding report to the public.

While teachers hope to reach an agreement, Torres said the 3,500-member TALB could plan to strike if the school district refuses to compromise.

"We hope the school board takes another look at this issue and does the right thing for teachers, nurses and librarians," she said.

Ron Bennett, president of School Services of California, a school district consultancy firm that aids administrators in collective bargaining, mediation and other issues, said more school districts are moving to place caps on employee health benefits as health care costs rise.

Bennett, a former deputy superintendent for the LBUSD, said his firm has assisted more than 90 school districts this year in collective bargaining. Well over half are facing disputes over health benefits.

Bennett said teachers in California were traditionally paid lower salaries in exchange for excellent health benefits, but salaries have grown over the years along with the cost of benefits. The average cost to a school district for employee health benefits has increase by about 8 percent each year, he said.

"Teacher salaries have become very competitive, California is among the top three in the nation, and yet we still have high-cost benefit plans," he said. "Benefits have not evolved as the salaries have gone up."

Bennett said teachers' unions and school districts are both facing tough choices.

"So many districts are to the point where they need to cut benefits, but if you look at it from a teacher's point of view, they're under a lot of pressure. They haven't had raises in years, they're seeing furlough days and layoffs and now they're losing benefits," he said.

"It's a scary world right now because there just isn't enough money to go around."